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Ripple CEO Brad Garlinghouse said there is an 80% probability that the Clarity Act will pass by the end of April. He encouraged the cryptocurrency industry to embrace a compromise rather than waiting for a perfect version of the legislation.
Clarity Is Better Than Chaos
XRP is once again at the center of regulatory uncertainty and market pressure. Ripple CEO Brad Garlinghouse recently stated that there is an 80% likelihood the CLARITY Act could be passed by the end of April, a development that may finally provide long-awaited regulatory clarity for the U.S. cryptocurrency market.
The proposed crypto market structure legislation seeks to clarify who oversees digital assets in the U.S., how various tokens are categorized, and which activities fall under securities or commodities law. The framework is designed to provide legal certainty for crypto firms and investors, reduce overlapping regulations, and encourage activity to return to the U.S. after years in which enforcement-driven oversight pushed companies overseas.
Progress on the legislation has stalled in the Senate Banking Committee since January, just as it neared passage. Notably, Coinbase, the largest U.S. cryptocurrency exchange, withdrew its support after being unable to reach a compromise on stablecoin yields and other critical provisions.
 
“We were pretty darn close to the Clarity Act going into the Banking Committee markup process, which would have been a big positive step,” Garlinghouse noted.
The Ripple frontman believes the current draft, while imperfect, might be more favorable than “chaos.”
“I think that it is so clear that clarity is better than chaos. The Clarity Act, as written, is not perfect… There’s things I don’t love about it. Let’s not let perfection get in the way of progress,” he opined.
According to Garlinghouse, Ripple has been a strong proponent of advancing the legislation, citing the company’s experiences navigating regulatory challenges with the U.S. Securities and Exchange Commission.
Although Ripple gained clarity after a federal judge ruled that XRP is not a security, the broader cryptocurrency industry remains uncertain.
“Whether we like it or not, the fortunes of Ripple rise and fall a little bit on the fortunes of the crypto industry,” he explained.
Executives from the cryptocurrency industry, along with lawmakers and banking officials, are holding frequent discussions at the White House and on Capitol Hill to resolve key disagreements. According to the Digital Chamber of Commerce, a Feb. 3 meeting focused on stablecoin yields. Most are eager to seal the deal before the midterm elections.
XRP has historically reacted strongly to significant legal and regulatory developments. Any confirmation of progress on CLARITY could potentially spark a relief-driven price rally.